r the future great consolidations of the railroads. After the Panic of 1893, the government called on Morgan once more to reorganize a large number of leading railroad systems of the country. The major lines J. P. dealt with were the Southern Railway, the Erie, the Philadelphia and Reading for a second time and the Northern Pacific. By the end of the century only two American systems were outside of his control. Various devices were used to ensure Morgan's continued control and that of his associates over the companies. One of these devices was his famous voting trust, by which shareholders voted to give their rights to Morgan's nominees on the board. Morgan's methods of railroad organization followed a standard pattern with small variations. He would first slash watered stocks, issued new bonds at a lower interest rate, assessed the stockholders for more capitol and eliminated all waste. Secondly, he would try to consolidate lines whenever possible. Third, Morgan and his associates would always charge enormous fees for their services. Pierpont, when questioned about his large compensation, said "I am not in Wall Street for my health." Morgan's reputation most likely grows from his role in the emergence of many modern companies. Morgan, through his innate business sense, helped launch some of America's largest corporations. Morgan was now known throughout the land for reorganizing the railroad system. He was able to invest and help foundling companies in need of his monetary support and guidance. Morgan was one of the earliest of Thomas Edison. Morgan allowed Edison to work in is office building and continue his experimentation, which caused several problems along the way. Morgan continued to support the growing company by acquiring many stock shares and facilitating the company's merger with the Thomson-Houston Electrical Company. This merger created the General Electric company, one of the most prominent companies in the modern worl...
